Nonstandard auto insurance explained
If you’ve been told nonstandard auto insurance applies to you, it typically means an insurer sees you or your vehicle as a higher risk. That doesn’t mean you’re a bad driver—it just reflects how insurers assess risk based on factors like driving history, coverage gaps, age, or vehicle type.
Below is a closer look at how many auto insurance customers are categorized, and what nonstandard auto insurance can look like in practice.
Get an auto insurance quote to compare your options.
Types of auto insurance
Car insurance offerings are usually categorized based on their potential risk. This helps insurance providers determine coverage options and pricing.
Every insurance company looks at things a little differently, but most organize drivers into a few main groups:
Preferred
Standard
Nonstandard
Residuals
Standard vs. nonstandard auto insurance
Nonstandard auto insurance is a category of car insurance for drivers considered high risk due to past driving offenses, lapses in auto insurance coverage, inconsistent payments, or other risk-related factors.
Both standard and nonstandard policies can protect you, your vehicle, and—depending on your specific policy—other people in your vehicle and other vehicles involved in an accident.
The main difference between standard and nonstandard auto insurance is how insurers assess and price risk. Drivers with clean records and continuous coverage typically qualify for standard policies. Drivers with higher-risk profiles may fall into the nonstandard auto insurance category. These policies can cost more and may be available through fewer insurers.
Reasons you may need nonstandard auto insurance
Some of the reasons a car insurance company may offer you nonstandard auto insurance include the following:
Poor driving record
One reason for nonstandard auto insurance is a history of violations. This includes drivers who have been involved in serious accidents or have received violations in the past, such as:
Reckless driving
Driving with no insurance
Driving without a license
Committing other traffic violations resulting in citations, including speeding tickets
Having a history of violations may indicate a higher level of risk. This risk typically increases with the number of violations on a driver’s record.
Some states require drivers with multiple offenses to get an SR-22 certificate (or an FR-44 in Virginia and Florida). An SR-22 is a statement from your insurance company proving you carry insurance on your vehicle.
Inconsistent auto insurance coverage
One of the first questions an auto insurance company might ask you is: Do you currently have insurance?
A lapse in insurance coverage won’t automatically put you in the nonstandard auto insurance category, but too many lapses of time with no auto insurance can make you appear risky to a potential insurer.
Age
Your age can also play a role.
Younger drivers: According to the Insurance Institute for Highway Safety (IIHS), teenagers and first-time drivers, are statistically more likely to be involved in accidents due to limited driving experience.
Older drivers: Although they might have more driving experience, age often comes with changes like slower reaction times, reduced vision, or other health considerations—all of which can sometimes influence how insurers assess risk or determine coverage.
Vehicle type
Driving a salvaged, classic, or highly customized vehicle could also point towards a nonstandard auto insurance classification.
Get an auto insurance quote to compare your options.
Foreign license
Having a foreign driver’s license doesn’t automatically qualify you for nonstandard auto insurance. The insurance provider may also consider other factors, like those mentioned above, and whether you have a driving record in the U.S. If the insurer can’t access a driving record to gauge potential risk, you may be considered nonstandard.
Bad credit history
Having a poor credit score doesn’t disqualify you from getting a car insurance policy, but it may affect how much you pay for your policy. Your credit score is typically used by banks and other lenders to assess your creditworthiness when you apply for a loan.
An insurance company may review items on your credit report to assess your financial responsibility and create an insurance score. Policy applicants with a low credit-based insurance score may be placed in the nonstandard insurance category.
You don’t own a car
If you don’t own a car but drive a vehicle to get to work or have other responsibilities that require you to drive, you’re not necessarily considered a high-risk driver. Your auto insurance provider may still classify you as a nonstandard driver and offer you non-owner auto insurance, which can help protect you while driving someone else’s vehicle.
Your policy also may serve as supplemental insurance for the vehicle’s owner and help pay for damages not covered by their primary auto insurance policy.
Who sells nonstandard auto insurance?
Not all insurance carriers offer nonstandard policies. If you’re shopping for coverage and think you may fall into the nonstandard category, it can help to compare several options to see which insurers offer this type of policy. Some nonstandard carriers may specialize in covering drivers with higher-risk profiles. Dairyland®, a brand of the Sentry Insurance Group, is one of those carriers.
If you’d like to explore available options, you can call 800-334-0090 to learn more.
Get a free, customizable insurance quote today!
*Data accuracy is subject to this article’s publication date.
The general information in this blog is for informational or entertainment purposes only. View our blog disclaimer.